The BBB Wise Giving Alliance Standards for Charitable Accountability were developed to assist donors in making sound giving decisions and to foster public confidence in charitable organizations. The standards seek to encourage fair and honest solicitation practices, to promote ethical conduct by charitable organizations and to advance support of philanthropy. The overarching principles of these standards is full disclosure to donors and potential donors at the time of solicitation and thereafter. These standards are voluntary and go beyond the requirements of local, state and federal laws and regulations.

Below are the 20 standards and information on Artrain’s compliance with them.

Governance and Oversight
The governing board has the ultimate oversight authority for any charitable organization. This section of the standards seeks to ensure that the volunteer board is active, independent and free of self-dealing.

1. A board that provides adequate oversight of the charity’s operations and staff.
• Artrain’s board of directors reviews and updates the organization’s strategic direction, approves the budget and fundraising plan and evaluates the CEO’s performance each year.
• Artrain has established accounting procedures supported by its auditors that are sufficient to safeguard the organization’s finances.


2. A board of directors with a minimum of five voting members.
• Artrain has a voluntary board of directors with up to 18 voting members who are eligible to serve three consecutive three-year terms. Since it serves the nation, Artrain strives to maintain a national board of directors that is geographically, gender, age and culturally diverse.


3. A minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation.
• Artrain holds four or more board meetings per year. Meetings are held in-person or by conference call. When in-person, meetings often take place in communities where Artrain is currently visiting, having a fund-raising event or at its national headquarters in Ann Arbor, MI. A quorum must be present in order to take any action.


4. Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board’s chair or treasurer.
• Artrain has one board member that is compensated: president/CEO, Debra Polich, is the only paid voting member of the board of directors. No other directors are compensated in any way.


5. No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation.
• Artrain avoids business transactions with board members or staff. If ever such a transaction takes place, it must be priced below or at market value and be approved by vote of the board. The interested party does not take part in the board vote on the transaction.

Measuring Effectiveness
An organization should regularly assess its effectiveness in achieving its mission. This section seeks to ensure that an organization has defined, measurable goals and objectives in place and a defined process in place to evaluate the success and impact of its programs in fulfilling the goals and objectives of the organization.

1. Have a board policy of assessing, no less than every two years, the organization’s performance and effectiveness and determining future actions required to achieve its mission.
• Artrain’s strategic direction is evaluated annually and its goals, strategies, objectives, tactics, and timelines are updated accordingly.
• Every two years Artrain’s board of directors conducts a self-assessment. The last board self-assessment took place in 2009.


2. Submit to the organization’s governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
   • A matrix outlining Artrain’s annual goals, strategies, objectives, tactics and timelines is prepared and reviewed by board and staff quarterly for performance and adjustments.
   • A report detailing the board assessment results is distributed at the next regularly scheduled board meeting after the report is completed and the results compiled.

Finances
This section of the standards seeks to ensure that the charity spends its funds honestly, prudently and in accordance with statements made in fund raising appeals.

1. Spend at least 65% of its total expenses on program activities.
• The percentage of Artrain’s total expenses spent on program activities:
• 2009 – 58%*
• 2008 - 80.4%
• 2007 - 79%
• 2006 - 80%
• 2005 - 71%
• 2004 - 67.7%
• 2003 - 66%
• 2002 - 87%


*2009 – during this year, Artrain served as producer of an exhibition project that it ultimately decided to transfer to another nonprofit organization.


2. Spend no more than 35% of related contributions (contributed revenue/fundraising expenses) on fundraising.
• The percentage of related contributions Artrain spent on fundraising:
• 2009 – 69%*
• 2008 – 18%
• 2007 - 17%
• 2006 - 15%
• 2005 - 19%
• 2004 - 14%
• 2003 - 40%
• 2002 - 5%


*2009 – during this year Artrain hired two fundraising consultants to raise funds for the exhibition project it was producing. As noted above, the project and subsequent funds raised were transferred to another organization thus skewing Artrain’s related contributions percentage for 2009.


3. Avoid accumulating funds that could be used for current program activities. To meet this standard, the charity’s unrestricted net assets available for use should not be more than three times the size of the past year’s expenses or three times the size of the current year’s budget, whichever is higher.
• As of 12.31.2009, Artrain’s unrestricted net assets totaled $493,671 and its 2009 annual budget was $950,000.


4. Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles.
• An independent auditing firm conducts Artrain’s annual audit. Artrain posts its audits and IRS Form 990s online at http://www.artrainusa.org/financials.asp. They are also available upon request by calling 734-747-8300 or emailing info@artrainusa.org.


5. Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expense was allocated to program, fundraising and administrative activities.
• This information is included in the Artrain audits posted at http://www.artrainusa.org/financials.asp.


6. Accurately report the charity’s expenses, including any joint cost allocations, in its financial statements.
• This information is included in Artrain’s audit and annual report.


7. Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fundraising and administration.
• Artrain’s fiscal year runs from January 1 through December 31. At its annual meeting, the finance committee presents to the board a detailed annual budget that includes projected expenses and revenues for the next fiscal year. The board is then charged with reviewing, revising and adopting the annual budget.

Fundraising and Informational Materials
A fundraising appeal is often the only contact a donor has with a charity and may be the sole impetus for giving. This section of the standards seeks to ensure that a charity’s representations to the public are accurate, complete and respectful.

1. Have solicitations and information materials distributed by any means that are accurate, truthful and not misleading, both in whole and in part.
• Artrain makes every effort to be completely truthful about the organization, mission, programs and fundraising activities in all means of communication.


2. Have an annual report available to all, on request, that includes:
1. The organization’s mission statement,
2. a summary of the past year’s program service accomplishments,
3. a roster of the officers and members of the board of directors, and
4. financial information that includes:
   - total income in the past fiscal year, expenses in the same program, fundraising and administrative categories as in the financial statements, and ending net assets.
• Artrain publishes an Annual Report based on the audited financial statements. The annual report is available online at http://www.artrainusa.org/ar.asp or by calling 734-747-8300.


3. Include on any charity websites that solicited contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.
• Artrain’s Annual Reports are available for viewing online at http://www.artrainusa.org/ar.asp.
• Artrain’s IRS Form 990 is available online at http://www.artrainusa.org/financials.asp.


4. Address privacy concerns of donors by:
1. Providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared with outside organizations, and
2. Providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors:
   ­ - What information, if any, is being collected about them by the charity and how this information will be used,
   - How to contact the charity to review personal information collected and request corrections,
   - How to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and
   - What security measures the charity has in place to protect personal information.
• Artrain takes the collection and maintenance of its donors’ and visitors’ information and wishes for privacy very seriously. Every effort is made to maintain accurate information and keep it secure. Review and correction of personal information can be arranged by contacting the office at 734-747-8300. At this time Artrain does not share or sell its donor or mailing lists with other agencies.
• Artrain provides a “check off box” on response forms that allows donors to state that they do not want their information shared with other organizations.


5. Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation:
1. The actual or anticipated portion of the purchase price that will benefit the charity, the duration of the campaign, and any maximum or guaranteed minimum contribution amount.
• Artrain does not currently benefit from any cause-related marketing efforts.


6. Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or the local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.
• Artrain has not received any complaints from the Better Business Bureau.